Nigerian aviation experts have dismissed any possibility of airfares dropping anytime soon due to foreign exchange, high cost of jet A-1 fuel and high interest rates, among other issues.
The National Bureau of Statistics, in its transport fare watch for August, disclosed that the average prices of air fares rose more than 56.56 per cent in one year.
According to the NBS, the average fare paid by air passengers for specified routes single journey was N123,700.14 in August 2024
In August 2023, airfare was on the average of N79,011.38 for a one-way route. Between July and August 2024, NBS said the cost rose 25.51 per cent from N98,561 for one-way tickets.
Airlines charged as high as N129,575 for Niger and N129,442 for trips to Abuja, a move that has triggered concern among passengers.
The Convener, Nigeria-South Africa Aviation Forum, Toni Ukachukwu said in an interview monitored by NewsNGR that the prices of air tickets will not return to around N70,000 charged last year.
He said issues around Nigeria’s foreign exchange shortage and the depreciation of the naira will not give room for the reduction in airfares.
Ukachukwu said, “It is feasible, but I don’t think we are going to see that anytime soon. The aviation industry is dollar-denominated and everything they do in the sector is around the dollar.
“As a country, we have FX issues that directly impact on the operators or the aviation industry. There is another aspect which is the jet A-1 fuel.
“The fuel accounts for close to 60 per cent of the operating costs of airlines. You can see where we are with fuel.”
The analyst said the setback of forex and jet fuel is enough to higher the cost of tickets if they are not adequately addressed.
“The operators must stay in the business. Not only stay in business but they must make sure their operation is safe and they don’t compromise in any shape or form,” he added.
Ukachukwu further described the issues surrounding high prices of tickets as a “very tough situation for the airlines” adding that “They are in the intensive care unit because they need the full support of a favourable environment before they can lower prices.”
The General Secretary of Aviation Safety Round Table Initiative, Olumide Ohunayo, opined that the aviation sector is part of the bigger economy that is battling high operation cost.
He alluded that airline operators are also battling high interest rates from deposit money banks.
NewsNGR reported that the Central Bank of Nigeria raised Monetary Policy Rates further to 27.75.
“I wonder when people keep looking at only aviation. Aviation is not an island. It is part of the economy. So, let us look at the fuel cost, the power cost and what are other cost components even within not talk of the dollar which is a major cost component of the industry.
“If you are talking about the cost coming down soon, I do not see that coming quickly,” Ohunayo said.
The expert said the only solution for a lower price is for the aviation industry to introduce smaller carriers of 20 to 30-seaters.
Ohunayo said, “You can only see that kind of price when we allow a new set of registration of schedule operators at the lower cadre, maybe the 20-30 seaters which can operate at the airports termed unviable.”
Aviation expert, Chris Aligbe suggested that the solution to reduce the costs of airfares is for the government to make a concerted effort and allocate forex annually to the industry.